158 Public-Private Partnership (PPP) projects were incorporated in Nigeria from multiple sectors across the economy.
This was disclosed by the Infrastructure Concession Regulatory Commission (ICRC) in its 2020 Annual Report and Accounts on Sunday in Abuja, citing that the projects went through various stages of development, procurement and implementation.
The report disclosed that the FEC granted approvals for PPPs which later obtained the status of Full Business Case (FBC) Compliance Certificates by the commission leading to contract signing and commercial close, according to the News Agency of Nigeria.
Some of the projects include Deep Seaport in Rivers, development of Ibom Deep Sea Port in Akwa Ibom and automated ticketing portal for the Nigerian Railway Corporation. Others were upgrading, expansion and operation of the Nigerian Correctional Services shoe/garment/leather factories in Aba-Abia and Janguza-Kano State and renovation of the students’ hostel at Kaduna Polytechnic.
The ICRC also recorded concession of the four International Airport Terminals in Abuja, Lagos, Kano and Port Harcourt and the Federal Ministry of Works and Housing Highway Development and Management Initiative (HDMI) for 12 selected routes.
What the commission said
“An important reason for the regularisation is to ensure revenues accruing to the government go into a Special Concession Account (SCA) set up for this purpose.
“The approval for the implementation of the SCA was given through a circular issued by the Minister of Finance, Budget and National Planning in June 2020.
“Already, N2.4 billion has accrued to the government as the concession fee for the development of the Gurara Dam II Project,” it said.
The report stated that challenges in the PPP sector include lack of dedicated funding to develop, promote and implement PPP projects which slowed the development of some projects. The report also added that PPP’s need strong political will and commitment, citing a bill to address identified gaps in the existing law of the commission pending before the National Assembly.
“The proposed amendment seeks to rename the ICRC as PPP Regulatory Commission to accommodate other forms of PPP and expand its powers to impose appropriate sanctions to ensure compliance with provisions of the Act and regulations thereof.
“The urgent passage of the bill will help ICRC to establish its independence, improve its regulatory oversight and exercise adequate control over the process,” it stated.
What you should know
Nairametrics reported earlier that Vice President Yemi Osinbajo stated that the implementation of Nigeria’s Public-Private Partnership (PPP) model of infrastructure development is a result of successful tax credit initiatives by the Federal Government.
Osinbajo added that the Infrastructure Corporation of Nigeria (InfraCo), a N15 trillion fund for infrastructural development in Nigeria, would also enable Nigeria to close its infrastructure deficit and also boost more PPP projects in the country.